Renault appoints interim chairman, COO to replace Ghosn, report says

PARIS -- Renault's board appointed an interim chairman and handed new powers to its chief operating officer to replace embattled boss Carlos Ghosn following his arrest in Japan on suspicion of financial misconduct, sources told Reuters.

Philippe Lagayette, the board's highest-ranked independent director, will take over temporarily as chairman, the sources said. COO Thierry Bollore, Ghosn's second-in-command, will take on full company officer powers.

At a Tuesday meeting, the board refrained from ousting Ghosn, Renault's chairman and chief executive, while it awaits more information on accusations that emerged from an internal investigation by alliance partner Nissan, the sources said.

Earlier on Tuesday, Renault said Bollore is "specifically in charge of the continuity" of the company's executive committee. All corporate governance procedures are "fully functional," Renault said in a statement Tuesday. The statement did not call Bollore interim CEO or add details about Ghosn's employment status.

Bollore, 55, a soft-spoken French national from Brittany, joined Renault in 2012 from car-parts supplier Faurecia, where he rose through the ranks to become vice president with responsibilities for global industry, quality and packaging. He started his career at tiremaker Michelin, working there for a number of years at the same time as Ghosn, who has called Bollore a "good candidate" to become Renault CEO.

Lagayette, 75, has been on Renault’s board since 2007 and leads the audit, risks and ethics committee as well as being part of the grouping that oversees executive compensation.

The French government has distanced itself from Ghosn, with Finance Minister Bruno Le Maire saying he was “not in a position to run the group.” Ghosn remains in custody in Japan and has not commented on the developments.

France is Renault's most influential shareholder and is seeking consensus at a board meeting later Tuesday without imposing these recommendations, one source said.

Ghosn allegations

Ghosn stands accused of under-reporting income of about $44 million and misusing company funds at Nissan, where he was also chairman.

The developments cast doubt over the future of the long-standing Renault-Nissan-Mitsubishi Alliance, held together by his towering presence. Nissan CEO Hiroto Saikawa told Renault board members Monday the company is expanding its probe to the alliance’s Amsterdam-based joint venture RNBV, three people familiar with the matter said, confirming an earlier Reuters report.

While the French government is seeking a change at Renault, “we will not demand his formal departure from the board for a very simple reason,” Le Maire said in an interview Tuesday with France Info radio. “We have no proof.”

Both Le Maire and his Japanese counterpart, Economy Minister Hiroshige Seko, reaffirmed their support for the alliance.

Ghosn, who was set to leave in 2022, had been laying the groundwork to ensure a future for the alliance, including the option of a merger. The setup has come under pressure from Nissan in recent years because of its lopsided balance of power in favor of Renault. Through complex cross-shareholding arrangements, Renault owns 43 percent in Nissan, including voting rights, while Nissan owns a 15 percent non-voting stake in Renault.

In a letter sent to Renault employees on Monday, Bollore expressed full support for Ghosn and pledged to preserve the alliance.